Saving for college is an investment in a student’s future. Research by the U.S. Census Bureau shows college graduates earn an average of $1 million more in their lifetimes than high school graduates.
But there is another reason to put aside money for college. Even a small amount of money saved in a tax-advantaged 529 college savings account is money you won’t have to borrow and repay with interest.
New Account Owners May Qualify for a $25 Match
To increase awareness of 529 plans, and in celebration of National 5·29 College Savings Day on May 29, 2015, the Utah Educational Savings Plan (UESP) will provide a $25 match to your account if you open your first UESP account and contribute at least $25 to it. To qualify, you and your beneficiary must be Utah residents and new to UESP.
Opening a new account online is easy. Go to uesp.org, click Open an Account, and follow the instructions. Accounts opened and contributions made online must be received on May 29, 2015, by 11:59 p.m., Mountain Time (MT).
Another way to open an account is to submit an Individual Account Agreement (form 100). Individual Account Agreements submitted by mail, fax, overnight carrier, or in person must be received on May 29, 2015, by 5 p.m. MT at UESP, State Board of Regents Building, 60 South 400 West, Salt Lake City, UT 84101-1284. The Individual Account Agreement is available for download at uesp.org or by calling 800.418.2551 toll-free.
With either method, be sure to enter the promotion code MAY29SAVE4COLLEGE during the account setup process.
Benefits of Owning a UESP Account
New account owners will enjoy the same flexibility that makes UESP one of the nation’s top-rated 529 plans. UESP requires no ongoing contributions to keep a new account active so account owners can save as much and as often as their budgets allow.
Earnings on contributions to a UESP account grow deferred from federal and Utah state income taxes, and withdrawals used for qualified higher education expenses are exempt from federal and Utah state income taxes. Qualified expenses include tuition and mandatory fees; required books, supplies, and equipment; and certain room-and-board costs at any university, college, or technical school in the United States or abroad that participates in federal student financial aid programs.
In 2015, a trust or single Utah taxpayer who files a Utah state income tax return can claim a 5 percent tax credit on contributions to a UESP account up to $1,900, for a maximum credit of $95 per qualified beneficiary. Spouses filing jointly can claim a 5 percent tax credit on contributions up to $3,800, for a maximum credit of $190 per qualified beneficiary. In order for an account owner to claim the credit, the beneficiary must have been age 19 or younger when designated as such on the account. If this requirement is met, the account owner can claim the credit each year a contribution is made for the life of the account.
If you have questions, visit uesp.org, send an email to info@uesp.org, or call 800.418.2551 toll-free.
Important Legal Notice
The Utah Educational Savings Plan (UESP) is a Section 529 plan administered and managed by the Utah State Board of Regents and the Utah Higher Education Assistance Authority (UHEAA).
Read the Program Description for more information and consider all investment objectives, risks, charges, and expenses before investing. Call 800.418.2551 for a copy of the Program Description or visit uesp.org.
Investments are not guaranteed by UESP, the Utah State Board of Regents, UHEAA, or any other state or federal agency. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-insured accounts. Please read the Program Description to learn about the FDIC-insured accounts. Your investment could lose value.
Non-Utah taxpayers and residents: You should determine whether the state in which you or your beneficiary pays taxes or lives offers a 529 plan that provides state tax and other benefits not otherwise available to you by investing in UESP. You should consider such state tax treatment and benefits, if any, before investing in UESP.
